We had a big win this week with Chilean gold miner Lachlan Star announcing that it has more than doubled its resource over the past year to over 3 million ounces, which more than doubles its mine life.
To keep you up to date, of the 22 stocks we’ve tipped, only five are under water. More to the point, seven of our picks are 20 per cent above where we tipped them, and 13 are up more than 10 per cent.
On another note, last Wednesday Harvey Norman announced a decline in its net profit for the half, and its shares went into free fall. Gerry Harvey’s retail woes are only in part caused by the internet and by deflation caused by a high Australian dollar. All retailers are suffering from the duel effect of lower house prices and uncertainty in equity markets. It hasn’t been like this for at least 20 years.
The only ones that can “win” in this environment are small caps, because they have a niche and win market share. Stay tuned for some savvy small cap retailers.
Our next issue is out on Thursday and we’ll have a results wrap, as well as two hot stock tips. We’re interviewing one of the most successful small cap fund managers in the business (over a long period) and we’ll be hearing from our portfolio manager. Lot’s to look forward to.